Semiconductor company Analog Devices is collaborating with MDA on a beam-forming integrated circuit (BFIC). The BFIC will be used in MDA’s phased array antenna for the Telesat Lightspeed low earth orbit (LEO) satellite constellation.
This constellation, which is made up of 298 satellites, has a planned launch in 2H23. It is expected to boost connectivity globally in the commercial, government, and defense markets.
Analog Devices (ADI) Vice President of Aerospace and Defense, Bryan Goldstein, said, “Electronically steered array technology is a necessity for the builders and operators of the next generation of LEO constellations. This technology provides MDA and Telesat with the ability to simultaneously steer multiple beams and allows beams to be rapidly repositioned at speeds that are not possible with mechanical systems.” (See Analog Devices stock analysis on TipRanks)
Amer Khouri, Vice President of Satellite Systems, MDA, commented, “We look forward to continuing this journey together and producing the large quantity of antennas required for this groundbreaking system.”
LEO satellites do not have a fixed position and move across the sky. In order to maintain continuous and high-speed connectivity with terminals on the ground, these satellites need to dynamically steer communication beams.
The BFIC technology is reliable and can perform under extreme temperatures and cosmic radiation over the full 10 to 12-year lifespan of each satellite.
Recently, Robert W. Baird analyst Tristan Gerra reiterated a Buy rating on the stock with a $160 price target.
Reacting to supply constraints for Analog Devices, Gerra commented, “Historically ADI has run at lower utilization rates versus peers for the very purpose of being able to respond to surges in demand while maintaining stable lead times.”
The rest of the Street is also bullish on the stock with a Strong Buy consensus rating, based on 14 Buys and 2 Holds. The average analyst price target of $180.13 implies an upside potential of 13% from current levels. Shares have gained about 65.7% over the past year.
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